Correlation Between Magyar Telekom and KORE Group
Can any of the company-specific risk be diversified away by investing in both Magyar Telekom and KORE Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Magyar Telekom and KORE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magyar Telekom Plc and KORE Group Holdings, you can compare the effects of market volatilities on Magyar Telekom and KORE Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Magyar Telekom with a short position of KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magyar Telekom and KORE Group.
Diversification Opportunities for Magyar Telekom and KORE Group
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magyar and KORE is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Magyar Telekom Plc and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings and Magyar Telekom is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Magyar Telekom Plc are associated (or correlated) with KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of Magyar Telekom i.e., Magyar Telekom and KORE Group go up and down completely randomly.
Pair Corralation between Magyar Telekom and KORE Group
Assuming the 90 days horizon Magyar Telekom is expected to generate 1.09 times less return on investment than KORE Group. But when comparing it to its historical volatility, Magyar Telekom Plc is 3.16 times less risky than KORE Group. It trades about 0.25 of its potential returns per unit of risk. KORE Group Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 228.00 in KORE Group Holdings on November 27, 2024 and sell it today you would earn a total of 16.00 from holding KORE Group Holdings or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magyar Telekom Plc vs. KORE Group Holdings
Performance |
| Timeline |
| Magyar Telekom Plc |
| KORE Group Holdings |
Magyar Telekom and KORE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magyar Telekom and KORE Group
The main advantage of trading using opposite Magyar Telekom and KORE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magyar Telekom position performs unexpectedly, KORE Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KORE Group will offset losses from the drop in KORE Group's long position.| Magyar Telekom vs. SwissCom AG | Magyar Telekom vs. Hellenic Telecommunications Org | Magyar Telekom vs. Telefonica SA ADR | Magyar Telekom vs. Lumen Technologies |
| KORE Group vs. Liberty Broadband Srs | KORE Group vs. Cable One | KORE Group vs. Liberty Broadband Corp | KORE Group vs. Telkom Indonesia Tbk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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